Bid to get $50m from gay governor

THE man who claims New Jersey Governor James E McGreevey sexually harassed him was pushing for a cash settlement of up to $50 million before the governor decided to announce that he was gay and had an extramarital affair.

Golan Cipel’s demands also included a last-minute push to have Mr McGreevey’s administration approve development plans for a private medical college in the state. Mr McGreevey’s lawyer refused to negotiate, one of the sources said, and rejected repeated offers to pay cash to avoid a lawsuit that would detail the governor’s relationship with Mr Cipel, a former campaign aide whose appointment as a homeland security adviser with little experience provoked a major political controversy for the governor.

Mr Cipel’s lawyer first contacted Mr McGreevey on July 23, asking for $50 million, an administration source said.

More offers were made, and the price dropped. Each time Mr McGreevey’s lawyer refused to agree and did not discuss the issue further, the source said.

Eventually that figure dropped to $5 million, and the offers to avoid a sexual harassment lawsuit continued on Thursday afternoon just as Mr McGreevey made up his mind to declare his homosexuality and admit to an extramarital affair with a man.

The FBI is investigating whether a former employee tried to blackmail the governor, according to law enforcement sources.